Two large insurers are rolling out new guarantee options for annuity holders.
John Hancock Annuities, Boston, a unit of Manulife Financial Corp., Toronto, has introduced the Income Plus For Life optional withdrawal benefit rider.
That rider, available with Hancock Venture Variable Annuity contracts, can guarantee payment of a lifetime income stream for consumers as young as 59.5.
The initial annual income is 5% of the initial purchase payment. The amount can increase for investors who wait at least 1 year to take withdrawals, and it is guaranteed to double for clients over age 60 who wait at least 10 years to take withdrawals and for younger clients who wait until they are 70 to start taking withdrawals.
For a client age 60, the rider can provide guaranteed lifetime income of 10% of the initial purchase payment starting at age 70, Hancock says.
The annual fee for the rider can range from 0.6% of assets to a maximum of 1.2% of assets, Hancock says.